The demand for video and data is pushing the growth of cloud services and data centres. Intel’s and Microsoft’s quarterly results have risen thanks to these demands.

Sources familiar with the matter at hand have stated, Digital Bridge Holdings LLC, a company whose focus is to invest in data centres, has agreed to acquire Vantage Data Centers Management Co LLC from Silver Lake Partners for more than $1 billion, including debt.

The acquisition marks the latest sign of consolidation taking place in the data center sector.

Companies in the sector are fast scaling up thanks to fervent demand from U.S. businesses for more video and data that is fuelling the growth of fiber optic and data storage services.

According to three sources familiar with the matter at hand, the deal will be announced once it is finalised.

Sources have preferred the cover of anonymity since the matter has no yet been made public.

While Silver Lake and Digital Bridge declined requests for comments, Vantage could not be reached for comment.

With growing demand for cloud services, technological companies are increasingly turning to vendors, such as Vantage to host and maintain their servers in a bid to cut down costs.